Erlanger lawsuit: TennCare continues to underpay hospitals

NASHVILLE, Tenn. (AP) – Chattanooga-based Erlanger Health System is once again suing Tennessee’s Medicaid program, known as TennCare.

In a new lawsuit, the company argues that the state continues to underpay some hospitals that treat the neediest patients.

The complaint is the third lawsuit Erlanger has filed against TennCare since 2009.

The suit alleges that Tennessee officials have continued to ignore a 2007 state law regarding how some hospitals are paid.

The complaint requests that a Tennessee judge reverse TennCare’s decision on Sept. 20 to reject Erlanger’s petition claiming that the payment rules were invalid.

A spokesperson for TennCare said they don’t comment on pending litigation.

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